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Foreign Aid, Education and Lifelong Learning in Africa

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Abstract

This study investigates the effect of foreign aid on education and lifelong learning in 53 African countries for the period 1996–2010. Three main issues are assessed, notably: (i) the effect of aid on education; (ii) the incremental impact of aid on education and (iii) the effect of aid on lifelong learning. Lifelong learning is measured as the combined knowledge acquired during the primary, secondary and tertiary levels of education. Foreign aid dynamics include total aid, aid from multilateral donors (MD) and aid from the Development Assistance Committee (DAC) countries. The empirical evidence is based on an endogeneity-robust generalized method of moments. The following findings are established. First, the aid variables have positive effects on primary school enrolment and lifelong learning, with the exception of aid from MD which positively affects only lifelong learning. Second, the positive effect on primary school enrolment consistently has a higher magnitude compared to the corresponding impact on lifelong learning. Third, the effects of aid dynamics on secondary and tertiary school enrolments are not significant. We also contribute to the literature by proposing an indicator of lifelong learning for developing countries.

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Notes

  1. The issue of exclusive growth is also the focus of a recent book by Fosu (2015b, c) which is devoted to elucidating: (i) the role of institutions in the underlying growth resurgence and (ii) myths behind Africa’s recent growth resurgence.

  2. It is important to note that, in order to assess the validity of the models, two tests have been performed, notably: the Arellano and Bond autocorrelation test that examines the null hypothesis of no autocorrelation and the Sargan-test which investigates the over-identification restrictions. The latter test examines whether instruments are not correlated with the error term in the main equation. The null hypothesis of this test is the position that the instruments as a group exhibit strict exogeneity or do not suffer from endogeneity. We have only reported AR(2) in difference because it is more relevant than the AR(1) which detects autocorrelation in levels. For the most part, we have neither rejected the Sargan null hypothesis for the validity of the instruments nor the AR(2) null for the absence of autocorrelation.

  3. Please see: Simpasa et al. (2016), Page and Shimeles (2015), Jones et al. (2015), Asongu (2015f), Jones and Tarp (2015) and Page and Söderbom (2015).

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Correspondence to Simplice A. Asongu.

Appendices

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Appendix 1

Table 4 Definitions of variables

Appendix 2

Table 5 Summary statistics

Appendix 3

Table 6 Correlation analysis

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Asongu, S.A., Tchamyou, V.S. Foreign Aid, Education and Lifelong Learning in Africa. J Knowl Econ 10, 126–146 (2019). https://doi.org/10.1007/s13132-017-0449-1

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